In a centralized organization, the whole organization assumes total responsibility for the
decisions and processes which it adopts or approves and, therefore, leaves the determination
and execution of individual policies and actions to higher levels of management. Sometimes a
centralized organization’s hierarchy is based on political, economic, or other kinds of groups.
Decisions which affect the whole organization are made collectively by the groups of
managerial level. (Wickelgren, M. 2019)
All corporations have a centralized organization, and this has caused very negative effects.
People in these organizations tend to be at each other’s throats and have competitive drives.
The organization develops and stays the same, and many of the employees become hard to
place and find companies with a career path outside. Unitary structures and unitary board are
two common examples of hierarchical structures. (Mookerjee, V. 2018)
Decentralization is when one person or department controls every aspect of a business, there
will inevitably be delays and inefficiencies in decision-making and overall efficiency. In
decentralized organizations, as much as possible, activities of the people who are part of the
